Monetary Policy Rate (MPR) maintains at 13.5%
The Central Bank of Nigeria (CBN) Monetary Policy Committee held its second meeting of the year 2020 on March 23-24, 2020. At the meeting, MPC members unanimously agreed to retain the Monetary Policy Rate (MPR) at 13.5%. They also voted to keep the other monetary policy parameters unchanged as follows:
Cash Reserve Ratio (CRR) 27.5%
Liquidity Ratio at 30% and an asymmetric corridor of -200/ -500 basis points around the MPR.
The NESG believes the rationale behind the decision was to avert a looming recession that is likely to transcend global, regional and national economies due to the socio-economic impact of coronavirus.
It is the NESG’s conclusion that the shut-down of operations in the private and public sectors across the country coupled with lower crude oil receipts would worsen the fiscal account position of the government.